How it works

Under the top-up application component, approximately $100 million will be distributed among communities who successfully apply for additional funding through the Ontario Community Infrastructure Fund (OCIF). This allows communities to partner with the province to invest in critical infrastructure projects.

Overview of the top-up application component

  • Approximately $100 million in provincial funding is available for the 2018 intake.
  • Eligibility for the 2018 intake is being targeted to communities whose formula-based grants in 2019 and 2020 add up to a combined total of less than $2 million. Eligible communities with critical infrastructure projects may submit proposals to the top-up application component to bring their total OCIF funding up to $2 million over 2 years.

Applicants that received funding under the third intake of the top-up application component of OCIF are not eligible to apply for funding under the 2017 intake. In addition, applicants that receive funding under the 2018 intake will not be eligible to apply for funding under the 2019 intake.

  • Sole or joint aplicants that received funding under the 2017 intake of the top-up application component of OCIF are not eligible to apply for funding under the 2018 intake. In addition, sole or joint applicants that receive funding under the 2018 intake will not be eligible to apply for funding under the 2019 intake.

How projects are assessed

A one-stage application process will be used to assess projects primarily in relation to the project’s critical health and safety aspects. The completeness of the applicant’s asset management plan and the funding need of the proposed project will continue to be secondary factors considered in the assessment of the project. These assessment criteria are consistent with the previous intake of the top-up application component.

Important timelines

  • Applications and all supporting documentation are due by 5 p.m. Eastern Daylight Time on August 28, 2018. Please note that applications submitted after this time will be considered late and the proposed project will be deemed ineligible for funding. Any supporting documentation must also be submitted by the deadline in order to be considered part of the application. In addition, applicants cannot change the proposed project after the application deadline unless an extraordinary circumstance arises (e.g., the collapse of a local bridge) and permission is granted by the Province.
  • Applications will be assessed to ensure they meet eligibility requirements within one month of the application deadline date. Applicants that do not meet eligibility requirements will be notified in early Fall if the proposed project is ineligible for funding.
  • Successful/unsuccessful applicants will be notified in January 2019 (estimated). Successful applicants must sign and return a contribution agreement and accompanying municipal by-law/LSB board resolution by no later than March 15, 2019.
  • Successful applicants must submit their 2017 Financial Information Returns without any critical errors to the Ministry of Municipal Affairs (MMA) in order to receive their first milestone payment.
  • Projects must be completed by December 31, 2020. The scope of the project must be aligned with the funding requested and should be representative of a project that can be realistically completed within the intake deadlines (i.e., April 30, 2018 to December 31, 2020).

How to apply for funding

Step 1: Eligible applicants are required to fully complete the Ontario Community Infrastructure Fund top-up application form including the applicable technical schedules.

Step 2: Applicants are also required to submit their asset management plans as part of this application. The submitted asset management plan must identify the project that is being applied for as a priority. In the application form, indicate the year in which the asset management plan was last updated.

The application and all supporting documentation must be received by email to OCIFApps@ontario.ca by 5 p.m. EDT on August 28, 2018. Applicants should not submit a scanned copy of the application form. If an applicant is unable to submit the application form via email or has any additional questions, please contact: 1-877-424-1300 or send an email to OCIFApps@ontario.ca.

Applicants must:

  • submit only 1 application for a single project (note: a single project may have multiple components; see an example of a project with multiple components below)
  • determine which project to put forward. Note: Projects that were unsuccessful in previous intakes will be accepted and re-evaluated according to the current intake’s assessment criteria

Note that email attachments cannot exceed 10MB or they will not be delivered by the system. If the email and attachments exceed 10MB, please separate into multiple emails and indicate the total number of emails which will be submitted (e.g., email 1 of 3).

If successful, municipalities will be required to obtain a municipal by-law (or board resolution for LSBs) to execute the project level contribution agreement with the Province.

Who is eligible

Applicants are eligible if:

  • they will receive less than $2 million in total over 2019 and 2020 under the formula-based component
  • they did not receive funding under the 2017 intake of the application-based component (successful applicants were announced in March 2018). This includes both sole and joint applicants.

Eligible municipalities and Local Services Boards (LSBs) have been sent a letter via email that indicates their eligibility for the 2018 top-up application component. Applicants should review their letter before applying. Eligible applicants who have not received their top-up eligibility letter by May 4th, 2018 should contact the Ontario Ministry of Agriculture, Food and Rural Affairs' (OMAFRA) call centre at 1-877-424-1300.

Joint applicants

Joint projects between multiple applicants are encouraged and additional consideration will be given to joint projects as part of the assessment. Joint projects are those where all applicants contribute financially to the project. Financial contributions may include the use of an eligible applicant’s OCIF top-up funding, OCIF formula funding allocation or other sources of community revenue. Eligible applicants may develop joint project applications with other partners including, but not limited to, other eligible municipalities, ineligible municipalities, LSBs, and Indigenous communities.

If a joint project is proposed, it counts as a project put forward by all applicants (a municipality cannot submit a joint application in addition to a stand-alone application). The lead applicant will be required to sign a contribution agreement and provide a copy of a project partnership agreement.

Joint projects may be larger than projects submitted by a single applicant, as joint applicants may request up to their combined total top-up funding caps as outlined in each proponent’s top-up eligibility letter.

When assessing a joint application, the province will consider the applicant with the strongest asset management plan and the most challenging funding need to inform the evaluation.

Example of a successful joint project

Under the 2017 intake of OCIF, the Town of Petrolia submitted a project in partnership with the Township of Enniskillen, Village of Oil Springs and Township of Dawn-Euphemia. The four communities combined their total top-up funding caps and will receive up to $7.1 million to upgrade the Petrolia Water Treatment Plant to “construct a new clearwell and replace the existing high lift pump station”. The upgrades will lead to increased storage capacity, help maintain system reliability and support the delivery of safe drinking water.

What projects are eligible

 Core infrastructure projects (roads, bridges, water and wastewater, including sanitary and stormwater infrastructure) that are identified as a priority in the community’s asset management plan are eligible for funding, including:

  • capital construction of new core infrastructure owned by the applicant that addresses an existing health or safety issue
  • capital maintenance for the renewal, rehabilitation or replacement of core infrastructure owned by the applicant

For projects to be eligible, projects must include a capital component.

Projects submitted by applicants must be aligned with applicants’ asset management planning and prioritization. For example, if an applicant has identified road needs as a high priority within its asset management plan, then submission of a road project would be appropriate.

Projects with multiple components

Projects can include multiple components. For example, a project including road paving, water main, and sewer main work at the same geographical location is acceptable. Applicants must clearly identify that the proposed project has multiple eligible components and must demonstrate that each component of the project is contiguous and meets eligibility requirements.

All applicants will be required to select a primary project type. The primary project type should reflect the nature of the health and/or safety issue the project is addressing. The Province may change the primary project type if the project is deemed to be within another category upon review of the proposed scope.

Applicants that are not sure whether a project with multiple components is eligible or if the project is contiguous are encouraged to contact OCIFApps@ontario.ca or call 1-877-424-1300 before submitting an application.

Combining funding from other capital programs to support the same project

Applicants can use their OCIF formula-based funding to support their OCIF application-based project. However, applicants cannot combine their OCIF top-up application funding and funding from another capital program including, but not limited to, Small Communities Fund, Clean Water Wastewater Fund, Connecting Links, and the Northern Ontario Heritage Fund Corporation program to support the same project. Applicants can submit an application for a project on the same site as a project already receiving funding from another capital program, but the applicant must clearly scope out the component that is unique to their OCIF application.

Please note that connecting link projects (i.e., municipal roads that connect two ends of a provincial highway through a community or to an international or interprovincial border crossings) are eligible. However, the same project cannot be submitted under both OCIF and the Province’s Connecting Links Program.

Applicants unsure how to best combine funding are encouraged to contact OCIFApps@ontario.ca or call 1-877-424-1300 before submitting an application.

Innovative capital technologies

Ontario has become a world-class centre for the development of new technologies that can help reduce, avoid or defer capital and lifecycle costs. WaterTAP exists to champion Ontario’s status as a world water technology hub. Many of these technologies already support communities across Ontario, including projects funded through the Province’s Showcasing Water Innovation Program. Examples of innovative approaches include trenchless technologies for lining water mains, phosphorus removal from stormwater, and ammonia removal from wastewater. Applicants may want to consider incorporating innovative technologies into their projects.

Land-use planning

Projects must be aligned and support the expected and required provincial priorities and outcomes, as set out in provincial land use policy, provincial land use plans, and municipal official plans.

The provincial land-use planning framework promotes a coordinated and integrated approach when planning for land use and infrastructure. This is achieved through policy direction in the Provincial Policy Statement (PPS) and applicable provincial land use plans such as the Growth Plan for the Greater Golden Horseshoe.

An integrated approach to land use and infrastructure planning allows for the identification of cost savings, or other benefits such as improved environmental protection, by ensuring that development choices make the best use of existing infrastructure before consuming more land or resources.

When read together, the PPS and provincial plans require municipalities to consider, among other things:

  • the implications of growth on infrastructure needs
  • the full lifecycle costs of infrastructure, which may include asset management planning
  • integration of environmental protection with infrastructure planning through the use of watershed or subwatershed plans.

What projects are ineligible

The following infrastructure projects are not eligible for funding:

  • infrastructure expansion projects to accommodate new industrial, commercial, institutional or residential development on greenfield sites and recreational trail projects
  • standalone cycling lane, sidewalk or street lighting projects. However, cycling lanes, sidewalks and street lighting that are part of a road or bridge project are eligible expenditures. As part of the application assessment, additional consideration will be given to road and bridge projects that include an active transportation component that promotes the safety of cyclists and pedestrians

Note: If an application is submitted for an ineligible project, applicants will not be given an opportunity to submit a different project in its place.

What costs are eligible

Project costs are eligible for top-up funding if they are incurred from April 30, 2018. Eligible project costs are third-party costs such as:

  • environmental assessment costs
  • design/engineering costs
  • project management costs
  • materials
  • construction
  • contingency costs (maximum 15%)

What costs are ineligible

Ineligible projects costs include:

  • acquisition or leasing of land, buildings and other facilities
  • financing charges
  • legal fees
  • rolling stock (e.g., trucks, graders, etc.)
  • movable/transitory assets (e.g., portable generators, etc.)
  • costs of completing the application
  • taxes, regardless of rebate eligibility
  • in-kind donations
  • staff costs
  • other operating costs

A more detailed list of eligible and ineligible expenditure categories will be provided in individual project level contribution agreements.

What happens after you apply

Once the completed application form has been submitted, an automated acknowledgement of receipt will be sent to the applicant.

A follow-up email with your file number will be issued within 10 business days. If you do not receive this email within 10 business days, please contact OCIFApps@ontario.ca or call 1-877-424-1300.

Government staff may contact an applicant to further discuss the application and/or request more information.

Both successful and unsuccessful applicants will be notified. Government staff will be available to provide feedback to unsuccessful applicants, if requested. Final funding decisions for the top-up application component of the OCIF are planned for January 2019 (estimated).

How projects are assessed

The OCIF top-up application component has a one-stage selection process. Eligible applicants are invited to complete an application and submit it to the government for assessment.

Assessment criteria

For all applicants and all projects types, projects will be assessed and prioritized for funding based on the following criteria:

Criteria 1: Expected benefit in relation to critical health and/or safety and technical merit of proposed project

The government will review projects based on specific technical assessment criteria used for each project type. Projects with multiple components will be assessed on the basis of their primary project type (e.g., a project deemed to be a wastewater project will only be assessed on the basis of its wastewater aspects). Applicants are encouraged to read the technical schedule in the OCIF application form to obtain a better sense of the criteria used to assess projects.

Road projects

Road infrastructure projects will be assessed for safety in terms of collisions and the reduction of collisions or collision severity associated with the project. This could be assessed through collision history, traffic volumes and Collision Modification Factor or Operational Performance Function depending on the project and information available.

Bridge projects

Safety issues related to bridges will be assessed primarily on the condition of the structure, which must be determined through an inspection carried out within the last two years in accordance with the Ontario Structure Inspection Manual (OSIM) or equivalent. Submission of aMunicipal Structure Inspection Form with adequate photos showing defect or deterioration is a requirement for all bridge projects. In addition, any critical structural features, such as hold down anchors that are not visible for inspection, drop-in spans etc. will be included in the assessment of the project.

Water projects

Human health and/or safety issues (including continuity of service) related to water systems will be assessed within the framework of the standards, policies and requirements of the Ministry of the Environment and Climate Change. The following aspects that may potentially pose a threat to public health and/or safety, and their critical and imminent levels will be assessed:

  • failure of meeting the requirements of health related parameters in the Ontario Drinking Water Quality Standards (ODWS), or future standards the Ministry could implement
  • an issued public health advisory, a Provincial Order, or regulatory relief related to the regulatory requirement of a drinking water system
  • low pressure experienced in the distribution system under normal conditions; structural failure (including watermain breaks)
  • failure of meeting any Ministry policy, operational or design requirements of a drinking water system

Wastewater projects

Human health and/or safety issues (including continuity of service) related to wastewater systems will be assessed within the framework of the standards, policies and requirements of the Ministry of the Environment and Climate Change. The following aspects that may pose a threat to public health and/or safety and/or environmental protection will be assessed, along with their relative scale, severity and likelihood:

  • discharge into the environment or exposure to raw or partially treated sewage
  • meeting applicable ministry standards, legal requirements or plans related to discharges to the environment
  • disruption or failure of wastewater system (sewer system and/or treatment facility) servicing to the community
  • alleviation of threats to community drinking water sources
  • reduction in loadings of phosphorus (Lake Erie watershed only)

Note: Projects to extend water and wastewater services into un-serviced or partially-serviced areas without a compelling environmental or health protection rationale, or to increase system capacity primarily to accommodate population growth or commercial and industrial development, are not eligible.

Criteria 2: Completeness of asset management plan

Asset management plans will be assessed for completeness until July 1, 2021. The Province will assess the content of these plans according to either the guidelines set out in the Province’s 2012 Building together: guide for municipal asset management plans or O. Reg. 588/17 Asset Management Planning for Municipal Infrastructure under the Infrastructure for Jobs and Prosperity Act, 2015, depending on which set of requirements the municipality indicates were used to prepare their asset management plan.

For clarity, municipalities are not required to submit asset management plans that are compliant with O. Reg. 588/17 as part of the 2018 OCIF intake and municipalities will not be penalized for submitting asset management plans that were prepared according to Building together: guide for municipal asset management plans. However, municipalities should be aware that O. Reg. 588/17 is phased in over time and the Province has committed to updating capital funding programs to reflect regulatory requirements. Municipalities are encouraged to plan accordingly.

Criteria 3: Funding need for the proposed project

The Province will review the cost of the proposed project per household, as well as median household income and weighted property assessment per household.

In general, applicants with greater funding need (i.e., higher project cost per household, lower median household income, lower weighted property assessment per household) will be more competitive in the evaluation process.

Weighted property assessment per household measures the size of the municipality’s tax base. It refers to the total assessment for a municipality weighted by the tax ratio for each class of property (including payments in lieu of property taxes retained by the municipality) divided by the total number of households. Weighted property assessment data is retrieved from the Municipal Property Assessment Corporation, municipal tax rate bylaws and Municipal Financial Information Returns. Median household income data is retrieved from Statistics Canada and it is a measure of median household income for all private households. The Province uses the best available data to determine the funding need of the proposed project.

Financial matters and other requirements

Maximum funding cap

Eligible municipalities and LSBs may request up to 90% of a project’s total eligible cost, to a maximum of the funding cap noted within their top-up eligibility letter. The cap is calculated based on the amount of funding the applicant is proposed to receive under the formula-based component. For the 2018 intake of the top-up application component, it is calculated by subtracting the total formula-based funding the applicant is receiving in 2019 and 2020 from $2 million.

Applicants are asked to request only the amount of funding needed to move forward with the project. Applicants must pay for all ineligible project costs as well as any potential future cost overruns experienced on a project.

For projects which are submitted by joint applicants, the maximum amount that can be requested is the total of the combined funding caps for all the applicants involved in the project. This allows joint applicants to pursue larger projects.

Payments

Funding for approved projects will flow as project milestones are achieved. These milestones and funding amounts may vary by project and budget availability. Payments will occur when each of the following milestones is reached: the contribution agreement is signed; after documentation is submitted detailing when the major construction contract has been awarded, and; when the project has been completed as detailed in a final report. More information will be made available to successful applicants in their individual contribution agreement.

Contractual obligations

Successful applicants will be expected to sign a standard government contribution agreement containing clauses regarding such items as insurance, arm’s length requirements, communications (including project signage), obligations with respect to consultations with Indigenous groups and reporting.

Successful municipalities and LSBs will be required to obtain a municipal by-law or board resolution to execute the project level contribution agreement with the Province. Joint projects will also be required to provide a copy of their partnership agreement.

Consultations with Indigenous groups

The Government of Canada, the Government of Ontario and municipalities may have a duty to consult and, where appropriate, accommodate Indigenous groups (e.g., First Nation and Métis peoples) where an activity is contemplated that may adversely impact an Aboriginal or treaty right.

Before providing funding to a project, the Government of Ontario will assess whether its duty to consult obligations are engaged. The day-to-day, procedural aspects of consultation may be delegated to project proponents (e.g., municipalities) who may also have their own obligations. Ontario’s delegation to proponents of aspects of consultation is a routine practice and the procedural aspects of consultation will be delegated to project proponents. Therefore, it is important that all applicants recognize this process and appropriately plan for this work (e.g., resources, time, etc.) as part of their funding submission.

Consultation requirements may vary depending on the size and location of the project in question. For successful applications, the Province will provide further details in writing surrounding specific consultation requirements, including which communities require consultation. Applicants should ensure duty-to-consult requirements are met prior to commencing the construction process.

Contact with questions

Mailing address:
Ontario community infrastructure fund – Top-up component
c/o Rural Programs Branch
Ministry of Agriculture, Food and Rural Affairs
1 Stone Road West, 4th Floor
Guelph ON N1G 4Y2